Excelsior Energy Limited
CNQ : EXEL

Excelsior Energy Limited

August 21, 2007 08:00 ET

Excelsior Commences Seismic Operations at West Surmont, Athabasca Oil Sands Area

CALGARY, ALBERTA--(Marketwire - Aug. 21, 2007) - Excelsior Energy Limited (CNQ:EXEL) ("Excelsior" or the "Company") is pleased to announce that further to its press release dated July 23, 2007, seismic operations have commenced at the West Surmont Property ("Surmont" or "Surmont Asset") in the Athabasca Oil Sands Area of Alberta. The Company plans to shoot 72.5 kilometers of 2D seismic data. The productive reservoir in the area is the McMurray Formation which is comprised of high quality fluvial and estuarine channel sands. There are 13 existing wells drilled on the Surmont Asset and a further 25 existing wells drilled on adjacent sections that confirm the presence of the reservoir oil sands with gross oil sand thicknesses ranging between 8 meters and 29 meters. The objective of the seismic program is to delineate the areas of thick McMurray Formation and to define the core well locations for a drilling program planned to commence in the 2007/2008 winter drilling season. The Company decided to use helicopter supported seismic acquisition rather than acquire the seismic during the winter season. This allows the company to accelerate the appraisal program of the Surmont Asset by bring forward the drilling program into the 2007/2008 drilling season.

The estimated cost of the seismic program is $2.1 million and seismic acquisition operations are expected to be complete by mid to late September. The Company anticipates engaging a third party, National Instrument 51-101 compliant engineering evaluation, once the 2D seismic has been acquired, processed and interpreted.

About Excelsior Energy

The Company is active in oil sands exploration and appraisal in the Hangingstone and West Surmont areas near Fort McMurray, Alberta and will hold a 75% working interest in 57 contiguous sections on completion of its farm-in obligations. The Company also holds a 100% working interest in Blocks 16/1a and 16/6c in the UK North Sea and a minor interest in gas production in Alberta. The Company's strategy is to capture oil and gas appraisal and development opportunities where we can leverage Management's diverse international experience and field development expertise. This includes heavy oil reservoir engineering and development of complex fields. The scale of the oil sands resource opportunity in Alberta complements Excelsior's international portfolio and strategy.

Forward-Looking Statements: This news release contains statements about future events that are forward looking in nature and, as a result, are subject to certain risks and uncertainties such as changes in plans or the occurrence of unexpected events. Actual results may differ from the estimates provided by management. Readers are cautioned not to place undue reliance on these statements.

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